In the face of growing geopolitical tension, we discuss a paper that examines the role of policy uncertainty on US consumer confidence. The paper studies the impacts of both trade policy and monetary policy across three periods of heightened geopolitical tension.

We discuss the 2025 Economics Letters paper, How do geopolitical risks and uncertainty shape US consumer confidence? by Moustapha Badran, Mohamed Awada, Joanna Darwiche and Whelsy Boungou.